Morepen Labs' standalone net profit surges to Rs. 7.73 crore in Q4

Our Bureau, Mumbai
Tuesday, May 2, 2017, 16:05 Hrs [IST]

Morepen Laboratories has posted strong growth of 179 per cent in standalone net profit during the fourth quarter ended March 2017 to Rs. 7.72 crore from Rs. 2.77 crore in the corresponding period of last year. Its net sales increased by 15.7 per cent to Rs. 142.95 crore from Rs. 123.59 crore. Interest cost declined significantly to Rs. 0.66 crore from Rs. 2.68 crore.

The company’s expanding global reach assisted in achieving a higher topline in fourth quarter. Export sales registered a growth of 29 per cent in Q4 at Rs. 73 crore. Sales from domestic operations, however, registered a marginal growth of 7 per cent at Rs. 68 crore.

The bulk drugs (API) segment continued to excel in the quarter by contributing 67 per cent to the company’s total turnover. Morepen Lab’s blockbuster bulk drug loratadine has once again emerged as a growth accelerator for the company in Q4 FY 2016-17. Sales from loratadine alone increased by 54 per cent in Q4 at Rs. 34.35 crore. Total bulk drugs sales in Q4 increased by 21 per cent at Rs. 94.35 crore.

The Dr Morepen basket, representing home-diagnostics category, did well too during the quarter. In this category, blood glucose monitors registered a maximum growth of 50 per cent in Q4 FY 2016-17 sales at RRs. 13.41 crore, compared to Rs. 8.94 crore sales in the corresponding quarter of the previous fiscal. Total quarterly sales from this division stood at Rs. 19.45 crore in Q4 FY 2016-17, registering a rise of 20 per cent vis-a-vis corresponding quarter of the previous fiscal.

OTC (over the counter) products and formulations also recorded good sales numbers for the quarter under consideration. Total sales from OTC products, comprising Burnol & Lemolate, went up by 11 per cent in Q4 FY 2016-17.

Sushil Suri, chairman and managing director, said, “Consistent focus on backward integration, research and process innovation has helped company garner better foothold in the market and company’s vision to invest in the new markets is showing results on the expected lines.”

During the entire financial year 2016-17, Morepen Lab’s net profit grew by 46 per cent at Rs. 23.04 crore as against Rs. 15.78 crore net profit registered in the previous fiscal. Net sales revenue in FY 2016-17 grew by 21 per cent at Rs. 529.18 crore. The total API business registered a growth of 23 per cent at Rs. 340.13 crore, Dr Morepen Home Diagnostics business registered a growth of 23 per cent at Rs. 77.76 crore, formulations business registered a growth of 10 per cent at Rs. 26.59 crore and product contract manufacturing and brand sharing business grew by 16 per cent at Rs. 84.69 crore.

Within the API business, sales of rosuvastatin increased by 84 per cent at Rs. 24.60 crore, that of montelukast jumped up by 34 per cent at Rs. 98.83 crore and loratadine by 13 per cent at Rs. 113.20 crore.

The sales revenue of blood glucose monitors and blood pressure monitors in FY 2016-17 increased to Rs. 59.26 crore as compared to Rs. 43.00 crore in the previous fiscal, registering a growth of 38 per cent. Looking at increasing incidence of diabetic cases in India, this segment offers great opportunity for growth in the coming years. The company has touched a base of one million installations of glucometers in FY 2016-17 and sold 48 million strips during the year against 30 millions of last year.

The entire “Dr Morepen” brand portfolio has recorded sales revenue of Rs. 219.43 crore in FY 2016-17, as against revenue of RRs. 173.10 crore in the previous fiscal, recording a growth of 27 per cent.

The company has also announced that its wholly owned subsidiary-Dr Morepen Ltd. is setting up a first of its kind chain of healthcare centres in India by the name of Dr. Morepen NOW to offer ECP Therapy to target consumers in India. The move is part of the company’s “Nation on Wellness (NOW)” drive, which envisions providing non-invasive means to treat cardiovascular diseases and diseases associated with cardio-metabolic issues gripping the country today. The first Dr. Morepen NOW clinic has been set up in Hauz Khas, New Delhi.